This appeal concerned the interpretation of a force majeure clause in commercial leases between school boards and a multi-purpose sporting facility.
Due to province-wide COVID-19 lockdowns, the facility was unable to open, and the school boards sought rent abatement under the force majeure clause.
The application judge found the clause applied and rent was abated.
The appellant (landlord) argued that the clause required the landlord to explicitly "claim" a force majeure event for rent abatement to occur, which they had not done.
The Court of Appeal dismissed the appeal, finding no palpable and overriding error in the application judge's interpretation.
The court affirmed that the landlord's objective inability to provide the leased premises due to the lockdown triggered the rent abatement, regardless of an explicit claim by the landlord.